Global Fundamentals Dictate A Mixed Day For The Dollar

The U.S. Dollar (USD) heads into the U.S. morning session after a mixed Wednesday against its major counterparts.

The EURUSD is currently trading at 1.3888, a 0.20% gain on the day’s open. The Euro strength comes as data showed gains in industrial production (YoY), rising 2.1% compared to the 1.2% the same time last year, and beating a forecast of 1.9%. Also boosting the Euro was European Central Bank (ECB) executive Benoit Coeure’s suggestion that the central bank does not see inflation as a near-term risk in the Eurozone. Whether the risk-off sentiment caused by the situation in Ukraine will lead to the USD recouping some of the decline during the European afternoon remains to be seen.

The Australian Dollar (AUD) is feeling the impact of a potential Chinese slowdown. Investors increasingly see the Australia as a proxy for China, largely based on the nation’s reliance on the Chinese economy. As China revealed exports dropped nearly 20% over the weekend, Australian markets sold-off and the AUD looks to be following suit. Having gapped down into Monday’s trading, the AUDUSD has seen three consecutive days of decline to Wednesday. The pair is currently trading at 0.8953, a 0.28% decline on the day’s open.

The U.K. Sterling (GBP) is trading at 1.6616, flat against the day’s open after recovering from a small dip during the European morning session.**relatedarticle**

Elsewhere, the USDJPY fell below Thursday 6 lows of 102.74, currently trading at 102.65, a 0.34% discount to the day’s open. The decline comes despite worse than expected data coming out of Japan during the late Asian session, with the Japanese Cabinet Office reporting a fall in household confidence to 38.3, missing expectations at 40.3.

Looking at the schedule, Treasury Secretary Jack Lew is set to testify on the 2015 Budget before the House Budget Committee in Washington DC during the U.S. afternoon session. The U.S. budget is something of a hot-topic at present, and so any allusion to monetary policy could serve up some volatility in the USD crosses before the day is out.

To contact the reporter of this story: Samuel Rae at samuel@forexminute.com

Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.

Risk Warning: All information on this website, including any opinions, charts, prices, news, data, Buy/Sell signals, research and analysis is provided as general market commentary and does not constitute any investment advice. Forexminute is not liable for any damage or loss, including but not limited to, any loss of investment, which may be based either directly orindirectly on the use of or reliance on such information. Before deciding whether or not to take part in foreign exchange or financial markets or any other type of financial instrument, please carefully consider your investment objectives, level of experience and risk appetite. Do not invest more money than you can afford to lose. Note that the high level of leverage in forex trading may work against you as well as for you. Please seek advice of an independent financial advisor if you are not fully aware about the risks associated with foreign exchange trading. Forex trading on margin involves considerable exposure to high risk, and may not be suitable for all investors. Forexminute does not endorse any companies, products or services which are represented on Forexminute.com The information on this website is subject to change without notice.